White Stuff is understood to have picked Phoenix as its preferred bidder and has entered negotiations to sell between 10% and 20% of the business to the firm. The sale is expected to value the company at between £70 million and £80m.
White Stuff founders, George Treves and Sean Thomas, own 80% of the company which has 47 stores and a mail order operation.
Last week, Phoenix entered exclusive talks with LK Bennett about buying the business. LK Bennett is expected to sell for between £80m and £100m.